Robert Naiman wrote: > As people contemplate a Greek exit from the Euro, some are saying: too > logistically complicated, ATMs have to be replaced, etc. > > What about a dual-currency system? Many places in the U.S. did this > during the Great Depression; Cuba did this during the special period. > Instead of changing the ATMs, the Greek government could say: everyone > who wants to hold Euros can still hold Euros; everyone who wants to > accept Euros can still accept Euros. But the Greek government is going > to start issuing "new drachmas"; instead of cutting government > salaries and positions and pensions and public spending, it's going to > pay a portion of these bills in "new drachmas"; the government will accept > "new drachmas" for payment of taxes and other government services; > businesses will be strongly encouraged, including through government > leverage, (ie suppliers and contractors) to accept a portion of "new > drachmas" as payment. This would allow the government to increase > public spending and inflate.
good idea, but Greece's external debts are still going to be stated in US$ or euros. As the new drachma depreciates relative to those currencies -- as it likely will -- those debts would be more valuable in terms of new drachmas. Greece should default on those debts. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
